1-800 CONTACTS, INC. v. Steinberg

132 Cal. Rptr. 2d 789, 107 Cal. App. 4th 568, 2003 Daily Journal DAR 3463, 2003 Cal. Daily Op. Serv. 2723, 2003 Cal. App. LEXIS 458
CourtCalifornia Court of Appeal
DecidedMarch 27, 2003
DocketB157600
StatusPublished
Cited by83 cases

This text of 132 Cal. Rptr. 2d 789 (1-800 CONTACTS, INC. v. Steinberg) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
1-800 CONTACTS, INC. v. Steinberg, 132 Cal. Rptr. 2d 789, 107 Cal. App. 4th 568, 2003 Daily Journal DAR 3463, 2003 Cal. Daily Op. Serv. 2723, 2003 Cal. App. LEXIS 458 (Cal. Ct. App. 2003).

Opinion

Opinion

COOPER, P. J.

This appeal is from an order striking a complaint under Code of Civil Procedure section 425.16, the anti-SLAPP (strategic lawsuits against public participation) statute. 1 The trial court ruled that plaintiff 1-800 Contacts, Inc.’s causes of action against defendant Craig S. Steinberg, for inducing breach of contract and “inducing breach of fiduciary and statutory duties,” arose from acts by Steinberg in furtherance of his constitutional rights of petition or free speech in connection with a public issue (§ 425.16, subds. (b)(1), (e)), and that plaintiff had failed, both factually and for legal reasons, to establish a probability of prevailing on either claim. (§ 425.16, subd. (b)(1).) Plaintiff contests both elements of the ruling, and also contends that the court reversibly erred by refusing to allow it to take Stein-berg’s deposition before deciding the motion to strike. We find plaintiffs various contentions unavailing, and affirm the order striking the complaint.

Facts

This lawsuit is an offshoot of a controversy between plaintiff, a discount direct seller of replacement contact lenses headquartered in Utah, and a *573 former in-house attorney for plaintiff, Jerrald D. Conder (Conder), which is the subject of a Utah lawsuit. Plaintiff contends that Conder has breached both fiduciary duties to plaintiff and a severance agreement with it, by offering his services to groups of optometrists, to seek laws regulating the activities of businesses like plaintiff. The present suit against Steinberg, a California lawyer and optometrist who has long been an opponent of plaintiff, charges him with inducing Conder’s alleged breaches of contract and fiduciary duty, by facilitating meetings between Conder and representatives of optometric associations.

The Complaint.

The unverified complaint alleged as follows. Plaintiff, the largest business of its type, competes with Steinberg and other optometrists in selling contact lenses. Between April 1999 and his termination in August 2001, Conder, as an in-house counsel, assisted plaintiff in legislative initiatives, regulatory proceedings, and litigation, threatened and actual. In most of these matters, plaintiff stood in a position adverse to optometrists or their state boards or associations. Among the lawsuits was one Steinberg brought in 1999 on behalf of California optometrists, which settled in April 2001. 2

Upon termination of his employment, Conder entered into a severance agreement (the agreement), which was attached to the complaint. In it, Conder gave plaintiff a general release, and plaintiff agreed to pay him six months’ salary. In addition, Conder agreed not to (1) “discuss any confidential information of [plaintiff]” without plaintiff’s written consent, on pain of forfeiting the right to severance pay; (2) for two years not to join, participate in, or be retained by any person or entity “having a majority of its sales from products or services similar to or competitive with those of [plaintiff]” in any territory where plaintiff did business; or (3) make “any public statement or statements to anyone concerning [plaintiff], its business objectives [or] management practices ... or any other proprietary information of [plaintiff].”

On January 18, 2002, Steinberg met with Conder at a Las Vegas hotel, at which the midyear meeting of optometrists of the American Optometric Association was ongoing. Plaintiff alleged on information and belief that Steinberg, with Conder’s knowledge and participation, had previously invited optometrists to meet with them and learn about, among other things, *574 plaintiffs “strategies and other confidential information” that could assist them in taking legislative or legal action adverse to plaintiff. At a meeting in a hotel restaurant, Conder advised Steinberg that he had a confidentiality agreement with plaintiff, but also spoke about information he had learned while representing plaintiff, which he said could help others in taking such legislative or legal action.

On the same day, the complaint alleged, Steinberg and Conder met throughout the afternoon, in a hotel bar, with individuals who plaintiff alleged on information and belief “were representatives of various state optometric associations.” Pursuant to Steinberg’s request, Conder spoke about information he had gained while representing plaintiff, which could be used against it. 3 He also allegedly disclosed confidential communications between plaintiff and state officials, including the California Attorney General’s Office. Conder and Steinberg announced further meetings that evening with other optometrists. On information and belief, those meetings went forward, and plaintiffs “confidential information” was discussed at them. Plaintiff also alleged on information and belief that Conder and Steinberg intended to hold similar meetings, with at least one scheduled for February 2002.

Incorporating these allegations, the complaint proceeded to set forth a first cause of action, for “Inducing Breach of Fiduciary and Statutory Duties.” It alleged that by virtue of his former attorney-client relationship with plaintiff, Conder owed plaintiff “a fiduciary duty, including duties of loyalty and confidentiality.” Those duties were allegedly “recognized and set forth in State Bar Rules of Professional Conduct throughout the United States, including the State Bars of both Utah and California.” The complaint quoted from two of the Utah Rules of Professional Conduct (Utah Rules), one of which provides (with limited exceptions) that a lawyer “shall not reveal information relating to representation of a client” without its consent (Utah Rules, rule 1.6(a)), and the other of which provides that a lawyer shall not use information relating to a former representation to disadvantage the former client, except as allowed by Utah Rules, rule 1.6, or when the information is generally known. (Utah Rules, rule 1.9(b).) Conder allegedly had violated these rules by divulging “confidential information” to Stein-berg, and by “improperly” using and disseminating information relating to his former representation of plaintiff.

*575 The complaint proceeded to allege that Steinberg had induced Conder “to violate his fiduciary duties to [plaintiff], including duties established by the [Utah Rules] . . . .” Conder had violated these duties “by, among other things,” using information acquired during his representation of plaintiff to its disadvantage, revealing confidential or privileged information to others including plaintiffs competitors, and assisting adverse parties in matters “which are the same or or substantially related to his prior representation . . .

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Onetaste Incorporated v. Netflix, Inc.
California Court of Appeal, 2025
Delaney v. Delaney CA2/6
California Court of Appeal, 2023
Chang v. Farmers Ins. Co. CA2/7
California Court of Appeal, 2023
Young v. Midland Funding LLC
California Court of Appeal, 2023
Orcutt v. MacDonald CA2/6
California Court of Appeal, 2023
Billauer v. Escobar-Eck
California Court of Appeal, 2023
Mewawalla v. Middleman
N.D. California, 2022
Higgins v. St. Margaret's Episcopal School CA4/3
California Court of Appeal, 2021
People v. AWI Builders CA4/3
California Court of Appeal, 2021
Bundick v. Penny Mac Loan Services CA3
California Court of Appeal, 2021
Hills v. Wells Fargo Bank, N.A. CA2/1
California Court of Appeal, 2020
Citizens of Humanity, LLC v. Hass
California Court of Appeal, 2020
Abir Cohen Treyzon Salo, LLP v. Lahiji
California Court of Appeal, 2019
Whitehall v. County of San Bernardino
California Court of Appeal, 2017
Guaranteed Rate, Inc. v. Conn
264 F. Supp. 3d 909 (N.D. Illinois, 2017)
Daniels v. Select Portfolio Servicing, Inc.
246 Cal. App. 4th 1150 (California Court of Appeal, 2016)
Bright Star Schools v. Hilger CA2/5
California Court of Appeal, 2016
Bucur v. Vithlani CA4/2
California Court of Appeal, 2016

Cite This Page — Counsel Stack

Bluebook (online)
132 Cal. Rptr. 2d 789, 107 Cal. App. 4th 568, 2003 Daily Journal DAR 3463, 2003 Cal. Daily Op. Serv. 2723, 2003 Cal. App. LEXIS 458, Counsel Stack Legal Research, https://law.counselstack.com/opinion/1-800-contacts-inc-v-steinberg-calctapp-2003.